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7 February, 10:40

You are scheduled to receive $20,000 in two years. When you receive it, you will invest it for six more years at 6.8 percent per year. How much will you have in eight years?

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  1. 7 February, 11:00
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    The amount you will have in eight years is $29,679.56

    Explanation:

    In order to calculate the amount you will have in eight years we would have to use the following formula:

    amount you will have in eight years=PV * (1+r) ∧n

    According to the given dа ta:

    PV=$20,000

    r=6.8%

    n=6

    Therefore, amount you will have in eight years=$20,000 * (1+6.8%) ∧6

    amount you will have in eight years=$29,679.56
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